One of world’s biggest exchanges is actively battling FUD allegations
Wallets related to centralized exchange KuCoin are showing an unusual movements of funds with around $1.7 billion worth of cryptocurrency being drained from them, with only $10 million left at this point.
Such a large outflow of money from the entity caused a lot of panic among investors who hold their money on the exchange or traders who are actively exchanging funds using KuCoin’s platform.
all 14 kucoin labeled wallets went from $1.8b to $10m in a day. their ETH stack remains untouched and rn only holding MATIC, NMR, and LEND
anyone else following this?? https://t.co/usoBkvvDme pic.twitter.com/nZDbYyeve5
— beetle (@1kbeetlejuice) July 4, 2022
Previously, the CEO of KuCoin released a whole thread talking about the safety of users’ funds and the FUD that is going around an exchange that has been accused of having great exposure to funds, like 3AC that was liquidated recently. Luckily, the CEO of the exchange dismissed all of those rumors and told everyone that KuCoin is “operating well.”
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At press time, all withdrawals and other operations on the exchange work as usual, and no warnings are being released. There were also no reports about withdrawals getting rejected or funds held without a user’s consent.
What could be the reason behind large outlfows?
Despite the announcement made by the CEO of the exchange, there is still no official explanation behind the unusual operations noticed by the community. Previously, the exchange’s lead explained the $80 million transaction from KuCoin’s official wallet to an “unknown wallet” posted by WhaleAlert. The CEO stated that the exchange is moving funds from the cold wallet.
A transaction from KuCoin cold wallet to KuCoin hot wallet. Nothing to worry about. #SAFU https://t.co/b35YS5B03U
— Johnny_KuCoin (@lyu_johnny) July 2, 2022
The most likely reason behind the increased activity of exchange-related wallets is the massive withdrawal volume caused by investors who were exposed to the FUD rising around the exchange and its community.
The most recent tweet made by the official account of Johny Lyu was the concise “GM.”